Management & Leadership

Capital Calls: Elon Musk, LeBron James

1 April 2021

Concise views on global finance in the Covid-19 era: Endeavor, Ari Emanuel’s entertainment group, is hoping the Tesla boss’s stardust will help a second attempt at an IPO; the basketball star’s stake in the Red Sox is a foil to Steve Cohen’s Mets deal.

Draghi’s corporate inbox will keep flashing red

31 March 2021

Rome’s to-do list, left over from the last government, includes selling dud bank MPS, resurrecting carrier Alitalia, expanding broadband and ending a motorway row. With vaccinations and recovery his legacy, these secondary tasks will slip to the bottom of Mario Draghi’s pile.

Credit Suisse is overdue for new chairman’s axe

31 March 2021

The Swiss bank’s shares are down 23% in a month after Archegos and Greensill collapsed. Though losses are unclear, investors assign no worth to the investment bank. By shrinking that unit, and hiving off the fund and local divisions, António Horta-Osório could rescue some value.

Deliveroo’s IPO cash hunger leaves sour aftertaste

30 March 2021

The UK food delivery firm’s offering values it at 7.6 bln pounds, the bottom of the target price range. Despite its rapid growth and big ambitions, investors face post-pandemic uncertainty. Boss Will Shu’s order for 1 bln pounds of fresh cash suggests profitability is a way off.

Capital Calls: BlackRock’s Archegos angle, SPACs

30 March 2021

Concise views on global finance in the Covid-19 era: The fallout from the collapse of Bill Hwang’s family office gives regulators reasons to focus on funds, not fund managers; and bosses of blank-check companies don’t take investor questions.

AstraZeneca could use a shot of under-promising

29 March 2021

The pharma group got caught in a spat between states over vaccine supplies, partly due to PR gaffes and overhasty pledges. A refresh of the board and chairman would be one way to overcome an episode that has hurt credibility and hampered rollout of a good product millions want.

Credit Suisse has PAF to redemption over Greensill

26 March 2021

Funds linked to the collapsed supply-chain firm may have billions of dollars in bad debt. The bank and its employees are culpable and should share losses with clients. Reviving a post-2008 asset-backed bonus vehicle would be one way for senior staff to shoulder some of the risk.

Capital Calls: Sports versus the Trump slump

26 March 2021

Concise views on global finance in the Covid-19 era: Political news startup Axios may merge with sports site The Athletic.

Pinduoduo governance cleanup misses some spots

26 March 2021

The $156 bln e-commerce company’s departing founder Colin Huang has given up his supervoting stock. But it’s not clear he’s relinquishing other holds on power. Insiders can exert outsize influence on the board. And Pinduoduo still lacks a finance chief. There’s more work to do.

Deliveroo’s main sustainability doubt is financial

25 March 2021

Some fund managers are shunning the food delivery group’s IPO over its treatment of workers. Unlike most ESG laggards, the $11 bln group is loss-making. Concern about labour rights and founder Will Shu’s super-voting stock are secondary to whether it can turn a consistent profit.

Russia has defences against U.S. sabre-rattling

25 March 2021

Given the U.S. president reckons his Russian counterpart is a “killer”, new sanctions on Russian government debt are possible. Jumpy prices forced Moscow to cancel a bond auction. But with a trade surplus and low external debt, Kremlin finances will hold up.

Capital Calls: Twitter time-wasting, News Corp

25 March 2021

Concise views on global finance in the Covid-19 era: Congressional hearings on Big Tech get ever less productive; meanwhile, the parent of the Wall Street Journal snaps up Investor’s Business Daily.

Capital Calls: Defence IPO, ViacomCBS and GameStop

24 March 2021

Concise views on global finance in the Covid-19 era: Italy’s Leonardo postpones the initial public offering of its U.S. unit; ViacomCBS and GameStop's rising stocks give them both a chance to raise fresh cash.

The Exchange: The old GE is gone and that’s ok

23 March 2021

Jeff Immelt ran GE for 16 years, during which time its market value roughly halved. His new book “Hot Seat” attempts to put that rocky period into context. The former GE boss chatted with John Foley about his part in the decline of an American industrial icon.

New OECD head may be West’s next anti-China weapon

23 March 2021

Australia’s Mathias Cormann will be the organisation’s next boss. His country is no stranger to trade disputes with Beijing. Look for the policy wonks he will lead to furnish evidence of competition-distorting practices that could help Uncle Sam and its partners push for change.

Exxon’s inexperienced board leaves it exposed

22 March 2021

The $240 billion oil giant’s shares have fallen by more than a third in five years. Even with three new members, energy experience is limited. Showing shareholders that it will be solid stewards of capital is imperative. Otherwise, rival Chevron has a takeover opening.

Capital Calls: Leon Black, Happiness index

22 March 2021

Concise views on global finance in the Covid-19 era: Apollo’s founder still has his imprint on the Museum of Modern Art and Dartmouth College; people are proving surprisingly resilient in the pandemic, a recent poll suggests.

Suez brings water pistol to French sewage shootout

22 March 2021

CEO Bertrand Camus proposed carving up the group or swallowing an “irreversible” poison pill if Veolia doesn’t raise its 11.3 bln euro bid. Rival boss Antoine Frérot can afford to pay more. But in the absence of other bidders he can first try to kick out Suez’s board.

Danone’s purpose will survive chairman’s departure

22 March 2021

Emmanuel Faber’s sustainability credentials did not prevent the yoghurt maker from ousting him. But fears the group will disavow its ESG ideals are misplaced. The standards are embedded in the French company’s operations and legal status. Besides, investors still support them.

Capital Calls: Bank M&A, Wine trades

19 March 2021

Concise views on global finance in the Covid-19 era: Sabadell’s decision to keep its UK unit nixes hopes of a deal with BBVA; U.S. vintner Duckhorn’s IPO ups pressure on Treasury Wine.